ASIC drops Swiss Kennedy inquiry

ASIC has been forced to drop its seven-year inquiry into businessman Trevor Kennedy over allegations he was involved in a secret shareholding in print group Offset Alpine, which sparked a major investigation into secret Swiss bank accounts involving deceased stockbroker Rene Rivkin and former federal Labor Minister Graham Richardson.

The Weekend AFR on Friday confirmed that the corporate regulator will not continue its pursuit of the former Qantas director.

Mr Kennedy, a former lieutenant of the late media mogul Kerry Packer, was never charged by ASIC.

But Mr Kennedy resigned all his public company directorships in late 2003 after an investigation by The Australian Financial Review exposed his involvement in a controversy over a secret 38.5 per cent stake in Offset Alpine, the printing company that mysteriously burnt down on Christmas Eve in 1993. The proceeds from that shareholding ended up in Swiss bank accounts.

Following the AFR articles in October 2003, ASIC re-opened its investigations into the ownership of the proceeds of the shares in Offset Alpine, which were transferred from Australian bank accounts into secret Swiss bank accounts.

The AFR revealed that during an investigation involving fraud at accounts operated by Swiss bank Bank Leumi, Rivkin had told a Zurich District Attorney under oath that he, Mr Kennedy and Mr Richardson were the secret investors behind the Offset Alpine shareholding, which ASIC traced back to two Swiss banks, Leumi and EBC Zurich in 1995.

The focus of the ASIC investigation was whether Rivkin, Mr Kennedy and Mr Richardson committed perjury in sworn testimony to ASIC in 1995 when they denied knowing the ownership of the Offset Alpine shares.

Offset shares had soared after it was revealed that the printer received a $53 million insurance payout from a fire that destroyed the printing group’s Sydney premises on Christmas Eve 1993, with the equipment valued at just $4 million.

ASIC froze the 38.45 per cent share parcel in 1995 and mounted an unsuccessful Federal Court action to identify the ultimate owner of the parcel held through Bank Leumi.

ASIC’s decision to no longer pursue Mr Kennedy brings to a close one of its longest-running investigations and follows its failure to win court battles against One.Tel founder Jodee Rich and mining magnate Andrew Forrest this year.

It is understood that ASIC decided to terminate its investigations after several years because it was unable to secure the necessary evidence after court battles in Switzerland and the UK, and lack of progress through the Mutual Recognition processes between Switzerland and Australia.

It is understood Mr Kennedy was told on Friday and ASIC is expected to release a statement on Sunday. The first documents that ASIC relied on to start its investigation were those obtained from the AFR under a subpoena.

The Australian Taxation Office also investigated all three men, prompting Mr Richardson and Mr Kennedy to settle.

Mr Kennedy is also a former chairman of Oil Search, who made his fortune from internet service provider OzEmail with politician Malcolm Turnbull.

Mr Kennedy is also a former director of the Packer’s Consolidated Press Holdings.